IPSAIS

“Assistance of Interest Subsidy” under the “Investment Promotion Scheme (IPS)” for MSME sector, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims to provide Interest Subsidy on the term loan on equipment/machinery etc and furniture’s / fixtures (except land and building).

The scheme “Assistance of Interest Subsidy” is a sub scheme under the “Investment Promotion Scheme (IPS)” for MSME Sector. It was launched on 3rd July, 2015 for a period of five years by the Dept. of Industries, U.T. Administration Of Dadra & Nagar Haveli And Daman & Diu. Now it has been extended further from 20th May, 2022 and shall be operative till 19th May, 2027.

> Objective of the "Investment Promotion Scheme (IPS)”:

The scheme envisages to provide incentives and assistance to the MSME Sector in order to nurture them and protect them from market vagaries thereby making them vibrant and successful, maximize Women participation in the business sector, reduce unemployment among the local residents and incentivize the industries to employ resident laborers etc.

> Objective of the "Assistance of Interest Subsidy" Sub-scheme:

Through this incentive, eligible industries will be eligible for Interest Subsidy on the term loan on equipment/ machinery etc. and furniture’s/ fixtures (except land and building).

• Should be a New Manufacturing/ Service units or Existing Manufacturing / Service units which undertakes Expansion/ Diversification in MSME sector.
• The unit should have commenced the commercial production between 20.05.2022 to 19.05.2027.
• Unit should be located in the U.T. of Dadra and Nagar Haveli & Daman and Diu.
• Enterprise will have to remain in production for 5 years from the date of commercial production.
• Enterprise will have to observe Pollution Control measures as prescribed by PCC or other competent authority as per Notification No. PCC/DMN/13(PART IV)/2020-2021/448 DATED 25/01/2021. 1. Loan should be sanctioned by a Bank or Financial Institution as per RBI guidelines.
• The enterprise shall have to submit the application within one year from the date of the first disbursement of loan or on or before one year from the date of commencement of commercial production.

• 50% Subsidy of interest charged by the Bank with an upper ceiling of ₹30,00,000/- per annum for a period of 5 years OR for the period of repayment of loan whichever is earlier.

> Note:

• 10% additional interest subsidy to differently abled entrepreneurs, women entrepreneurs and registered Start up in manufacturing /service sector.
• 10% additional subsidy to young entrepreneurs below the age of 35 years on the date of sanction of term loan.

• The Enterprise will not be eligible for Interest Subsidy under this Scheme if, term loan is sanctioned after one year from the date of commencement of commercial production/ rendering services.